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Kalyan Jewellers shared had doubled in value in 2024, having gained 116%, while those of Titan had declined 11% during the year, marking their first calendar year of negative returns since 2016.
For the December quarter, Titan reported Jewellery business growth of 26% year-on-year, while Kalyan’s India business grew by 41% during the quarter.
Titan’s Gold sales grew 24%, while studded sales increased by 21%. On the other hand, Kalyan reported a 24% same store sales growth, according to its business update.
Despite the outperformance last year, Kalyan Jewellers is trading at par with Titan on the valuation front. Kalyan is trading at 103 times financial year 2025 price-to-earnings, compared to Titan’s 101 times.
For financial year 2026, Kalyan trades at 67 times price-to-earnings, compared to Titan’s 70 times.
Post Kalyan and Titan’s business updates, shares of other jewellery companies like Senco Gold, Thangamayil Jewellers, TBZ, PC Jewellers and PN Gadgil are also trading with gains of up to 4% in Tuesday’s trading session. These companies have not shared any business update for the quarter so far.
The street is anticipating a strong quarterly performance from these companies due to festive demand, wedding season and an increase in the prices of gold.
These are also some of the key triggers to keep an eye on when the companies come out with their full quarterly numbers:
- Margins due to the high salience of Gold
- Impact of lower diamond prices on studded jewellery
- and inventory gains for smaller players due to the increase in Gold prices
Out of the 34 analysts that have coverage on Titan, 17 of them have a “buy” rating on the stock, 12 of them say “hold”. while five of them have a “sell” rating on the stock. On the other hand, out of the nine analysts that have coverage on Kalyan Jewellers, eight of them have a “buy” rating, while the other one has a “sell” recommendation.
Shares of Titan are currently trading 2.2% higher at ₹3,547, while those of Kalyan are off the highs of the day, trading 0.2% lower at ₹743.3.
(Edited by : Hormaz Fatakia)
